Affordable Valuations in Divorce Cases- Major Problem Simple Solutions

Business Valuation LLC, a business valuation service introduces two summary valuation services for smaller closely held family businesses.

A closely held business is often the single most valuable asset in the marital estate which needs to be valued in a divorce. One in six households owns and operates a closely held business. One in two marriages ends in divorce. Important valuation issues arise when the closely held business needs to be valued and
(A) Classified as Marital and Separate Property, and further
(B) Increase in business value during marriage needs to be separated between active and passive appreciation.

Courts have frequently recognized marriage as an economic partnership. Divorcing spouses' rights to share in the wealth created during marriage have been steadily expanding as shown by a number of recent rulings handed down all over the country. The courts have further distinguished situations where a party brings assets to the marriage, keeps them segregated and set apart throughout the marriage, and through the mere passage of time and the action of market forces the assets experience an increase in value.
Passive appreciation of separate property of either of the parties to a marriage, or that increase which is due to inflation or to a change in market value resulting from conditions outside the control of the parties, is generally considered separate property which is not subject to equitable distribution.

In addition to valuing the closely held business, Business Valuation LLC can help to develop valuation models that split the increase in value between active and passive appreciation.
contact us at 304 685 1761 or    
E-mail bizvaluer@valuellc.com





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